Tamboran Resources Ltd (ASX:TBN) has started trading on ASX following a successful initial public offer which raised about $61 million at 40 cents a pop.
The company intends to support Australia and Asia-Pacific’s transition to net-zero CO2 by developing low CO2 unconventional gas resources in the Northern Territory of Australia.
Tamboran holds premium acreage in the highly prospective Beetaloo/McArthur basin and intends to use proceeds from the IPO to fund its 25% interest in the Santos-operated EP 161 Tanumbirini #2H and Tanumbirini #3H horizontal wells.
The new funds will also underpin the drilling of the Maverick #1H horizontal well on Tamboran’s adjacent 100%-owned EP 136 licence in the first half of 2022.
Beetaloo Sub-basin’s commercial development
Tamboran is well funded for the drilling of two horizontal wells on EP 161 and one horizontal well on EP 136 in the core of the Beetaloo Sub-basin and, subject to drilling success, the company will be well-positioned to deliver the first commercial development from the Beetaloo Sub-basin by 2025.
As well as funding of up to three horizontal wells, proceeds will be used for 2-D seismic acquisition and other working capital.
EP 161 drilling campaign
The drilling campaign in EP 161, operated by Santos, in which Tamboran has a 25% interest, began on May 11 with the spudding of the Tanumbirini #2H horizontal well.
Drilling of this well is expected to be completed in July 2021.
The rig will then drill Tanumbirini #3H and both wells will be flow tested in the second half of this year.
2-D seismic acquisition is anticipated to occur over Tamboran’s 100% EP 136 licence in the second half of 2021 and the Maverick #1H horizontal well is anticipated to be drilled in the first half of 2022.